Sensex up 258 points on higher Asian cues

The BSE benchmark sensex was up by 258 points in early trade today on fresh buying by operators and investors, triggered by a rally in Asian stocks on reports that European policymakers are considering new steps to shore up European countries struggling with debt.

The 30-share Bombay Stock Exchange (BSE) index resumed higher at 16,289.32 and shot up further to 16,360.26 before quoting at 16,308.62 at 1015 hours, translating into a net gain of 257.52 points, or 1.60%, vis-a-vis its last close.

The National Stock Exchange's 50-share Nifty index also shot up by 82.05 points, or 1.70%, to 4,917.45 at 1015 hours.

Shares of consumer durables, realty, banking, IT and metal companies were the major gainers in early trade.

The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near-month September, 2011, series to the October, 2011, series. The September, 2011, derivatives contracts expire on September 29.

Reports that the finance ministry is considering some tax cuts on equity and foreign exchange trading also boosted the market sentiment.

Asian stocks surged in early trade today on reports that European policymakers are considering new plans to support European countries struggling with debt. The key benchmark indices in China, Indonesia, Japan, Hong Kong, Taiwan, Singapore and South Korea were up by between 0.33% and 4.21%.